UAE Banks: Liquidity Supports Credit Growth

UAE credit growth accelerated to 14.4% in Mar-2026, marking the strongest expansion since 2019, supported by sovereign-linked financing, resilient consumer lending and improving private-sector activity. With infrastructure investment, workforce expansion and sustained real estate activity continuing to support financing demand, alongside a ~USD 550bn project pipeline, domestic credit growth is expected to remain sustainably strong, with ~10-12% representing a durable medium-term baseline. Unlike regional peers, supportive liquidity conditions (domestic LDR ~68%) continue providing capacity for further lending expansion, although geopolitical tensions and a higher-for-longer rate environment could weigh on investment activity, funding flows and borrowing costs.